Melissa Kates, Holmen School District director of human resources, told the board the district faces sustained enrollment declines and a significant budget deficit and proposed a voluntary retirement incentive to reduce staffing through attrition rather than layoffs.

"A voluntary retirement incentive," Kates said, describing a one-year enhancement to educator post‑employment benefits available to the first 15 educators who submit retirement notice for the 2025–26 school year. She said the payments would be delivered through a five‑year HRA, spreading the district cost while producing long‑term savings that could exceed the short‑term expense.

Kates also explained operational details: the handbook change would apply only to educators, it would remain in handbook language until five years (the last payment) have been completed for qualifying participants, and staff would be required to submit retirement notice by Feb. 15 to qualify. The proposal is on the Dec. 22 consent agenda so staff can be notified promptly if it is approved.